Davis Names Top 25 Brand Leaders in 2013

ATLANTA, Feb 11, 2014 (BUSINESS WIRE) --
Davis Brand Capital today released the 2013 Davis Brand Capital 25
ranking, which evaluates brand management and performance
comprehensively. It is the only annual ranking of companies that
demonstrates overall, balanced approaches to managing the full spectrum
of brand and related intangible assets, providing an indicator of total
business strength and effectiveness.

The annual ranking, based on an in-depth analysis of more than 1,100
global brands, evaluates companies’ abilities to manage the five key
areas driving brands today: brand value; competitive performance;
innovation strength; company culture; and social impact. The ranking
does not aim to place a financial value on the brand capital of the
companies. Rather, the list reveals the comparative strength and breadth
of each company’s total brand management.

For three consecutive years, the Davis Brand Capital 25 rankings have
outperformed the Dow Jones Industrial Average and the Standard & Poor’s
500 indexes. In 2013, a hypothetical stock portfolio consisting of Davis
Brand Capital 25 companies traded on U.S. stock exchanges, weighted by
rank, would have returned 33.8 percent — outperforming the Dow by 7
percent and the S&P 500 by 4 percent. With technology companies
representing five of the top six companies on the list, the Davis Brand
Capital 25 continued to closely track NASDAQ performance, as expected.

“With the ranking in its fifth year now, we are seeing a clear pattern
emerge of the companies that really are the best of the best in brand
management,” said Patrick T. Davis, chief executive officer of Davis
Brand Capital, based in Atlanta. “Our ranked companies know better than
most how to increase brand value, drive performance, bring new ideas to
market, attract and retain top talent, and benefit their communities,”
said Davis. According to a Federal Reserve study, U.S. companies invest
more than $1 trillion in these types of intangibles each year.

Apple (AAPL) tops the list for the third consecutive year. Rounding out
the top five are: Google (GOOG); IBM (IBM); Microsoft (MSFT); and
Coca-Cola (KO). This is the first year Coca-Cola, regarded by many as
the world’s most valuable brand, has broken into the top five, proving
its brand leadership in additional areas.

Samsung (kospi:005930) was the biggest gainer on this year’s list,
moving up ten spots to #9. Its steady hold of approximately one-third of
the smartphone market was earned with the development and launch of the
Galaxy S4, the first credible rival to the iPhone. While Apple has
maintained its place at the top of the list, the company continued to
lose smartphone market share to Samsung in 2013.

Technology leaders continue to dominate the top half of the list, with
the same four companies holding the top four spots as in the past three
years. This pattern points to the deep understanding these technology
leaders have of fostering and managing key brand drivers like innovation
and company culture, effectively setting the pace for change.

IBM has shown a slight decline on the ranking during the past five
years. Big Blue captured the #1 spot on the first two lists, but has
dropped slightly to #3 since then. Microsoft has held on to its #4 rank,
but with anticipated changes to leadership and a noticeable brand shift
to the more human side of technology, it will be a company to watch
closely in 2014.

In the beverage category, the cola wars are over, based on this year’s
ranking. Coca-Cola (KO) moved up to the #5 spot, while Pepsi (PEP), fell
off the list completely. This is a testament to Coca-Cola’s
best-in-class brand and portfolio management, especially considering
current health concerns about sugary drinks. The company’s proactive
management of the growing social and health concern helped it gain in
the 2013 ranking.

In another notable move, Amazon (AMZN) returned to the list at the #6
spot after ranking #17 in 2009. The brand’s continued commitment to
customer service and innovation outweighed its razor-thin margins,
showing the true value of intangible assets in a purely transactional
space.

In the automotive category, the Germans are back in the driver’s seat,
and the Americans are gaining ground. Daimler (dai:GR) moved up five
spots from 2012 to the #10 rank in 2013, overtaking BMW (bmw:GR) as the
top-ranked carmaker. Volkswagen (vow:GR) maintained its rank of #23,
while Ford Motor Company (F) ranked #19 on the list. Noted for its
strides in innovation, Ford leads the category in its focus on the car
as an integrated, consumer experience, well-aligned with current
attitudes in the millennial generation. Toyota Motor Corporation (TM)
remains the only Japanese carmaker represented on the list, moving down
three spots to #16.

AT&T (T) leads the mobile carrier category, moving up four spots this
year to #11. AT&T has advanced 11 spots in the past two years and has
been the only mobile carrier represented on our list for the past three
years. Archrival Verizon has been left behind.

Four banks appear on this year’s list, and perhaps unsurprisingly, their
financial performance and brand strength determine their rankings
relative to one another. J.P. Morgan (JPM) leads the way at #14 followed
by HSBC (HBC) at #18. Citi (C), the only bank to move up in the rankings
from 2012, moves up two spots to #22. Wells Fargo (WFC) rounds out the
banks on the list, moving down four positions to #25, back to where it
debuted on the list in 2011.

Many major consumer and packaged goods brands are notably absent from
the list. “As strong as CPG brands must be, many of them are stuck in
dated approaches to brand management that does not go beyond product
marketing and traditional advertising. It is no longer enough to win,”
said Davis. “Procter & Gamble (PG) separates from the pack at #8 on the
ranking for its leadership in intra-portfolio brand management and
highlighting the holding company’s role in providing unique combinations
of benefits to consumers.”

The 2013 Davis Brand Capital 25 ranking is based on a study of 10
distinct data sets. It is a compilation and analysis of the most
respected annual performance rankings published in industry-leading and
specialized annual lists, plus Davis Brand Capital’s proprietary
processes and analysis. Each of the five key areas of brand is given
equal importance to achieve an integrated, balanced evaluation.

Prior to the Davis Brand Capital 25, annual brand performance rankings
were not evaluated and aggregated to reveal the comparative strength of
companies’ overall brand management. “It is essential for senior
executives to understand that management of brand and other intangibles
reflects broader success,” said Davis.

The ranking will be updated yearly, with the 2014 Davis Brand Capital 25
released early in 2015.

Davis Brand Capital develops, manages, values and invests in leading
brands worldwide. Founded in 1996, the firm is headquartered in Atlanta,
with operations in New York, St. Louis and Washington, DC (affiliate).
For more information, visit www.davisbrandcapital.com
or call 404-347-7778.

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